Asus is working on augmented reality glasses for 2016

Asus is now officially set to enter the augmented reality wearables market next year, according to its CEO.

The company previously teased it might do so and now that sentiment has become official plans. Jerry Shen, CEO, said at an earnings webcast: "It should be next year when we come out with a product, we think AR (augmented reality) will be very important for people's lives."

According to Asus chairman Johnney Shih the company was in talks with Microsoft in October about building a cheaper version of HoloLens. A developer version of the HoloLens headset is due to launch next year for $3,000.

Jerry Shen said he thinks that augmented reality headsets will be more popular that virtual reality ones like Oculus Rift or PlayStation VR. "You can make a real setting meld together with yourself and the AR portion," he said. "Internally, we are talking about how to prepare."

Asus already makes laptops, phones and tablets. Perhaps its headset could work like Samsung's Gear VR. This is more affordable and uses a smartphone as the brains and camera for the virtual reality rig.

Expect 2016 to be the year of virtual reality and augmented reality headsets hitting the market. How many will be affordable is another matter entirely.